- Net income of $16.7 million,
or $0.61 per diluted share for the
quarter.
- ROA of 0.91% and ROE of 14.49% for the quarter.
- Total loans of $5.42 billion
increased by $120.6 million, or 2.3%
(9.2% annualized) in the third quarter.
- Net interest income increased by $2.4
million, or 4.5% from the previous quarter.
- Net interest margin of 3.17% increased by 12 bps from the
previous quarter.
- Board of Directors approved quarterly cash dividend of
$0.26 per share.
- Arnold Martines, current
President and Chief Operating Officer announced to succeed
Paul Yonamine as Chief Executive
Officer, effective January 1,
2023.
HONOLULU, Oct. 21,
2022 /PRNewswire/ -- Central Pacific Financial Corp.
(NYSE: CPF) (the "Company"), parent company of Central Pacific Bank
(the "Bank" or "CPB"), today reported net income for the third
quarter of 2022 of $16.7 million, or
fully diluted earnings per share ("EPS") of $0.61.
"We continued to execute well in the third quarter as reflected
in our strong earnings, loan growth and expanding net interest
margin," said Paul Yonamine,
Chairman and Chief Executive Officer. "While the broader economy is
presenting challenges for the entire financial services industry,
Hawaii has outperformed the nation
during past recessions. Additionally, Central Pacific is
well-positioned with solid asset quality and capital."
"We are pleased with our third quarter performance as our teams
continue to work hard to meet our customers' needs. We
continue to develop our digital and Banking-as-a-Service
initiatives as a key part of our long-term strategic goal to build
robust digital channels," said Arnold
Martines, President and Chief Operating Officer.
Yesterday, the Company announced the promotion of Martines to
Chief Executive Officer of both the Company and the Bank,
succeeding Yonamine who will become Chairman Emeritus of the
Company and the Bank, as well as an advisor to Martines. Also,
Catherine Ngo, presently Executive
Vice Chair, will become Chair of the Board of Directors of both the
Company and the Bank. All changes will be effective January 1, 2023. In commenting on the changes,
Yonamine said, "I have had four great years at Central Pacific Bank
and have accomplished all of my strategic goals for the Company and
the Bank, including our RISE 2020 program with the $40 million renovation of our Central Pacific
Plaza headquarters, our online, mobile and ATM upgrades and our
total corporate rebrand. These accomplishments have put us on a
solid path to becoming a digital-first bank to help us excel in the
rapidly changing banking paradigm. I'd like to express my
appreciation to the Board, Arnold, David and Catherine, for their
partnership and support the past four years. I expect us to
continue on our current path and can think of no better banker
anywhere than Arnold Martines to
lead this great institution into the future."
In commenting on the changes, Martines, who will also be named
to the Board of Directors of the Company and the Bank, said, "It is
my honor and privilege to lead Central Pacific Bank. We are an
organization with strong core values and a solid digital roadmap
for the future, thanks to Paul and Catherine. We intend to stay
true to our founders and continue their legacy of focusing on
serving the needs of our customers, by providing exceptional
service while leveraging new technologies to provide the ultimate
in convenience and value."
Earnings Highlights
Net interest income for the third
quarter of 2022 was $55.4 million, an
increase of $2.4 million, or
4.5% from the prior quarter, and a decrease of $0.7 million, or 1.3% from the year-ago
quarter.
Net interest margin for the third quarter of 2022 was 3.17%, an
increase of 12 basis points ("bps") from the prior quarter and a
decrease of 14 bps from the year-ago quarter. The year-ago quarter
included $8.6 million in net PPP
interest income and fees, compared to $0.7
million in the current quarter.
The sequential quarter increase in net interest income and net
interest margin is primarily due to higher asset yields and
continued strong loan growth. Additional information on average
balances, interest income and expenses and yields and rates is
presented in Tables 4 and 5.
In the third quarter of 2022, the Company recorded a provision
for credit losses of $0.4 million,
compared to a provision of $1.0
million in the previous quarter and a release of the credit
loss reserves of $2.6 million in the
year-ago quarter.
Other operating income for the third quarter of 2022 totaled
$9.6 million, compared to
$17.1 million in the previous quarter
and $10.3 million in the year-ago
quarter. The decrease from the previous quarter was primarily due
to the $8.5 million gain on sale of
restricted Class B common stock of Visa, Inc. last quarter.
Additional information on other operating income is presented in
Table 3.
Other operating expense for the third quarter of 2022 totaled
$42.0 million, compared to
$45.3 million in the previous quarter
and $41.3 million in the year-ago
quarter. The decrease in other operating expense from the previous
quarter was primarily due to a non-cash settlement charge of
$4.9 million for the termination of
the Company's defined benefit pension plan (included in other) last
quarter. Additional information on other operating expense is
presented in Table 3.
The efficiency ratio for the third quarter of 2022 was 64.62%,
compared to 64.68% in the previous quarter and 62.32% in the
year-ago quarter.
The effective tax rate for the third quarter of 2022 was 26.2%,
compared to 26.0% in the previous quarter and 24.7% in the year-ago
quarter.
Balance Sheet Highlights
Total assets at
September 30, 2022 of $7.34
billion increased by $38.5 million, or 0.5% from $7.30 billion at June 30, 2022, and
increased by $39.4 million, or
0.5% from $7.30 billion at
September 30, 2021.
Total loans, net of deferred fees and costs, at
September 30, 2022 of $5.42
billion increased by $120.6 million, or 2.3% from
$5.30 billion at June 30,
2022, and increased by $376.4 million, or 7.5%, from $5.05 billion at September 30,
2021. Loans by type and geographic distribution are summarized
in Table 6.
Total deposits at September 30, 2022 of $6.56 billion decreased by $65.6 million or 1.0% from
$6.62 billion at June 30,
2022, but increased by $40.6 million, or 0.6%, from $6.52 billion at September 30,
2021. Core deposits, which include demand deposits, savings
and money market deposits and time deposits up to $250,000, totaled $6.04
billion at September 30, 2022, and decreased by
$119.3 million from
June 30, 2022. Core deposit and total deposit balances are
summarized in Table 7.
Asset Quality
Nonperforming assets at
September 30, 2022 totaled $4.2
million, or 0.06% of total assets, compared to $5.0 million, or 0.07% of total assets at
June 30, 2022, and $7.2 million,
or 0.10% of total assets at September 30, 2021. Additional
information on nonperforming assets, past due and restructured
loans is presented in Table 8.
Net charge-offs in the third quarter of 2022 totaled
$1.6 million, compared to net
charge-offs of $1.0 million in the
previous quarter, and net charge-offs of $0.2 million in the year-ago quarter.
The allowance for credit losses, as a percentage of total loans
at September 30, 2022 was 1.19%, compared to 1.23% at
June 30, 2022, and 1.48% at September 30, 2021.
Additional information on net charge-offs and recoveries and the
allowance for credit losses is presented in Table 9.
Capital
Total shareholders' equity was $438.5 million at September 30, 2022,
compared to $455.1 million and
$555.4 million at June 30, 2022
and September 30, 2021, respectively. The decline in
shareholders' equity was primarily due to an increase in unrealized
losses on our available-for-sale investment securities portfolio
which flow through accumulated other comprehensive income, and were
driven by the rising interest rate environment.
During the third quarter of 2022, the Company repurchased
218,000 shares of common stock, at a total cost of $4.9 million, or an average cost per share of
$22.33. As of September 30,
2022, $15.2 million remained
available for repurchase under the Company's share repurchase
program.
At September 30, 2022, the Company's leverage capital, tier
1 risk-based capital, total risk-based capital, and common equity
tier 1 ratios were 8.7%, 11.5%, 13.7%, and 10.6%, respectively,
compared to 8.6%, 11.6%, 13.9%, and 10.7%, respectively, at
June 30, 2022.
On October 20, 2022, the Company's Board of Directors
declared a quarterly cash dividend of $0.26 per share on its outstanding common shares.
The dividend will be payable on December 15, 2022 to
shareholders of record at the close of business on
November 30, 2022.
Conference Call
The Company's management will host a
conference call today at 1:00 p.m. Eastern Time (7:00
a.m. Hawaii Time) to discuss the quarterly
results. Individuals are encouraged to listen to the live
webcast of the presentation by visiting the investor relations
page of the Company's website at
http://ir.cpb.bank. Alternatively, investors may participate
in the live call by dialing 1-844-200-6205 (access code:
420241). A playback of the call will be available through
November 21, 2022 by dialing 1-866-813-9403 (access code:
996439) and on the Company's website. Information which may be
discussed in the conference call is provided in an earnings
supplement presentation on the Company's website at
http://ir.cpb.bank.
About Central Pacific Financial Corp.
Central Pacific
Financial Corp. is a Hawaii-based
bank holding company with approximately $7.34 billion in assets as of September 30,
2022. Central Pacific Bank, its primary subsidiary, operates
27 branches and 65 ATMs in the state of Hawaii. For additional
information, please visit the Company's website at
http://www.cpb.bank.
EQUAL HOUSING LENDER | Member FDIC | CPF LISTED
NYSE
Forward-Looking Statements ("FLS")
This document
may contain FLS concerning: projections of revenues, expenses,
income or loss, earnings or loss per share, capital expenditures,
the payment or nonpayment of dividends, capital position, credit
losses, net interest margin or other financial items; statements of
plans, objectives and expectations of Central Pacific Financial
Corp. or its management or Board of Directors, including those
relating to business plans, use of capital resources, products or
services and regulatory developments and regulatory actions;
statements of future economic performance including anticipated
performance results from our business initiatives; or any
statements of the assumptions underlying or relating to any of the
foregoing. Words such as "believes," "plans," "anticipates,"
"expects," "intends," "forecasts," "hopes," "targeting,"
"continue," "remain," "will," "should," "estimates," "may" and
other similar expressions are intended to identify FLS but are not
the exclusive means of identifying such statements.
While we believe that our FLS and the assumptions underlying
them are reasonably based, such statements and assumptions are by
their nature subject to risks and uncertainties, and thus could
later prove to be inaccurate or incorrect. Accordingly, actual
results could differ materially from those statements or
projections for a variety of reasons, including, but not limited
to: the effects of inflation and rising interest rates; the adverse
effects of the COVID-19 pandemic virus (and ongoing pandemic
variants) on local, national and international
economies, including, but not limited to, the adverse impact on
tourism and construction in the State of
Hawaii, our borrowers, customers, third-party contractors,
vendors and employees as well as the effects of government programs
and initiatives in response to COVID-19; the impact of our
participation in the Paycheck Protection Program ("PPP") and
fulfillment of government guarantees on our PPP loans; the increase
in inventory or adverse conditions in the real estate market and
deterioration in the construction industry; adverse changes in the
financial performance and/or condition of our borrowers and, as a
result, increased loan delinquency rates, deterioration in asset
quality, and losses in our loan portfolio; our ability to achieve
the objectives of our RISE2020 initiative; our ability to
successfully implement and achieve the objectives of our
Banking-as-a-Service ("BaaS") initiatives, including adoption of
the initiatives by customers and risks faced by any of our bank
collaborations including reputational and regulatory risk; the
impact of local, national, and international economies and events
(including natural disasters such as wildfires, volcanic eruptions,
hurricanes, tsunamis, storms, earthquakes and pandemic viruses and
diseases, including COVID-19) on the Company's business and
operations and on tourism, the military, and other major industries
operating within the Hawaii market
and any other markets in which the Company does business;
deterioration or malaise in domestic economic conditions, including
any destabilization in the financial industry and deterioration of
the real estate market, as well as the impact of declining levels
of consumer and business confidence in the state of the economy in
general and in financial institutions in particular; changes in
estimates of future reserve requirements based upon the periodic
review thereof under relevant regulatory and accounting
requirements; the impact of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (the "Dodd-Frank Act"), changes in capital
standards, other regulatory reform and federal and state
legislation, including but not limited to regulations promulgated
by the Consumer Financial Protection Bureau (the "CFPB"),
government-sponsored enterprise reform, and any related
rules and regulations which affect our business operations and
competitiveness; the costs and effects of legal and regulatory
developments, including legal proceedings or regulatory or other
governmental inquiries and proceedings and the resolution thereof,
the results of regulatory examinations or reviews and the effect
of, and our ability to comply with, any regulations or regulatory
orders or actions we are or may become subject to; ability to
successfully implement our initiatives to lower our efficiency
ratio; the effects of and changes in trade, monetary and fiscal
policies and laws, including the interest rate policies of the
Board of Governors of the Federal Reserve System (the "FRB" or the
"Federal Reserve"); securities market and monetary fluctuations,
including the anticipated replacement of the London Interbank
Offered Rate ("LIBOR") Index and the impact on our loans and debt
which are tied to that index and uncertainties regarding potential
alternative reference rates, including the Secured Overnight
Financing Rate ("SOFR"); negative trends in our market
capitalization and adverse changes in the price of the Company's
common stock; political instability; acts of war or
terrorism; pandemic virus and disease, including COVID-19;
changes in consumer spending, borrowings and savings habits;
failure to maintain effective internal control over financial
reporting or disclosure controls and procedures; cybersecurity and
data privacy breaches and the consequence therefrom; the ability to
address deficiencies in our internal controls over financial
reporting or disclosure controls and procedures; technological
changes and developments; changes in the competitive environment
among financial holding companies and other financial service
providers; the effect of changes in accounting policies and
practices, as may be adopted by the regulatory agencies, as well as
the Public Company Accounting Oversight Board ("PCAOB"), the
Financial Accounting Standards Board ("FASB") and other accounting
standard setters and the cost and resources required to implement
such changes; our ability to attract and retain key personnel;
changes in our personnel, organization, compensation and benefit
plans; and our success at managing the risks involved in the
foregoing items.
For further information with respect to factors that could
cause actual results to materially differ from the expectations or
projections stated in the FLS, please see the Company's publicly
available Securities and Exchange Commission filings, including the
Company's Form 10-K for the last fiscal year and, in
particular, the discussion of "Risk Factors" set forth therein. We
urge investors to consider all of these factors carefully in
evaluating the FLS contained in this document. FLS speak only as of
the date on which such statements are made. We undertake no
obligation to update any FLS to reflect events or circumstances
after the date on which such statements are made, or to reflect the
occurrence of unanticipated events except as required by
law.
CENTRAL PACIFIC
FINANCIAL CORP. AND SUBSIDIARIES
|
Financial
Highlights
|
|
(Unaudited)
|
TABLE
1
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
(Dollars in
thousands,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
Sep 30,
|
except for per share
amounts)
|
|
2022
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
|
2022
|
|
2021
|
CONDENSED INCOME
STATEMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$ 55,365
|
|
$ 52,978
|
|
$ 50,935
|
|
$ 53,096
|
|
$ 56,086
|
|
$
159,278
|
|
$
157,951
|
Provision (credit) for
credit losses
|
|
362
|
|
989
|
|
(3,195)
|
|
(7,692)
|
|
(2,635)
|
|
(1,844)
|
|
(6,899)
|
Total other operating
income
|
|
9,629
|
|
17,138
|
|
9,551
|
|
11,566
|
|
10,253
|
|
36,318
|
|
31,494
|
Total other operating
expense
|
|
41,998
|
|
45,349
|
|
38,205
|
|
42,422
|
|
41,345
|
|
125,552
|
|
120,624
|
Income tax
expense
|
|
5,919
|
|
6,184
|
|
6,038
|
|
7,605
|
|
6,814
|
|
18,141
|
|
18,153
|
Net income
|
|
16,715
|
|
17,594
|
|
19,438
|
|
22,327
|
|
20,815
|
|
53,747
|
|
57,567
|
Basic earnings per
common share
|
|
$
0.61
|
|
$
0.64
|
|
$
0.70
|
|
$
0.80
|
|
$
0.74
|
|
$
1.96
|
|
$
2.05
|
Diluted earnings per
common share
|
|
0.61
|
|
0.64
|
|
0.70
|
|
0.80
|
|
0.74
|
|
1.94
|
|
2.03
|
Dividends declared per
common share
|
|
0.26
|
|
0.26
|
|
0.26
|
|
0.25
|
|
0.24
|
|
0.78
|
|
0.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (ROA) [1]
|
|
0.91 %
|
|
0.96 %
|
|
1.06 %
|
|
1.22 %
|
|
1.15 %
|
|
0.98 %
|
|
1.10 %
|
Return on average
shareholders' equity (ROE) [1]
|
|
14.49
|
|
14.93
|
|
14.44
|
|
16.05
|
|
14.82
|
|
14.62
|
|
13.82
|
Average shareholders'
equity to average assets
|
|
6.30
|
|
6.45
|
|
7.34
|
|
7.61
|
|
7.79
|
|
6.69
|
|
7.93
|
Efficiency ratio
[2]
|
|
64.62
|
|
64.68
|
|
63.16
|
|
65.61
|
|
62.32
|
|
64.19
|
|
63.67
|
Net interest margin
(NIM) [1]
|
|
3.17
|
|
3.05
|
|
2.97
|
|
3.08
|
|
3.31
|
|
3.06
|
|
3.22
|
Dividend payout ratio
[3]
|
|
42.62
|
|
40.63
|
|
37.14
|
|
31.25
|
|
32.43
|
|
40.21
|
|
34.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED AVERAGE
BALANCES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans,
including loans held for sale
|
|
$ 5,355,088
|
|
$ 5,221,300
|
|
$ 5,114,260
|
|
$ 5,073,069
|
|
$ 5,022,909
|
|
$ 5,231,098
|
|
$ 5,070,993
|
Average
interest-earning assets
|
|
6,991,773
|
|
6,982,556
|
|
6,932,649
|
|
6,890,829
|
|
6,761,643
|
|
6,969,326
|
|
6,559,740
|
Average
assets
|
|
7,320,751
|
|
7,309,939
|
|
7,341,850
|
|
7,315,325
|
|
7,210,210
|
|
7,323,596
|
|
6,998,034
|
Average
deposits
|
|
6,535,321
|
|
6,626,462
|
|
6,581,593
|
|
6,536,826
|
|
6,424,768
|
|
6,580,502
|
|
6,219,372
|
Average
interest-bearing liabilities
|
|
4,538,893
|
|
4,442,172
|
|
4,429,114
|
|
4,407,612
|
|
4,326,589
|
|
4,470,461
|
|
4,247,745
|
Average shareholders'
equity
|
|
461,328
|
|
471,420
|
|
538,601
|
|
556,462
|
|
561,606
|
|
490,140
|
|
555,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[1] ROA and ROE are
annualized based on a 30/360 day convention. Annualized net
interest income and expense in theNIM calculation are based on the
day count interest payment conventions at the interest-earning
asset or interest-bearing liability level (ie. 30/360,
actual/actual)
|
[2] Efficiency
ratio is defined as total operating expense divided by total
revenue (net interest income and total other operating
income)
|
[3] Dividend
payout ratio is defined as dividends declared per share divided by
diluted earnings per share
|
|
|
|
|
CENTRAL PACIFIC
FINANCIAL CORP. AND SUBSIDIARIES
|
Financial
Highlights
|
|
(Unaudited)
|
TABLE 1
(CONTINUED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
|
2022
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
REGULATORY CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
|
|
Central Pacific
Financial Corp
|
|
|
|
|
|
|
|
|
|
|
Leverage capital
ratio
|
|
8.7 %
|
|
8.6 %
|
|
8.5 %
|
|
8.5 %
|
|
8.5 %
|
Tier 1 risk-based
capital ratio
|
|
11.5
|
|
11.6
|
|
11.9
|
|
12.2
|
|
12.2
|
Total risk-based
capital ratio
|
|
13.7
|
|
13.9
|
|
14.2
|
|
14.5
|
|
14.6
|
Common equity tier 1
capital ratio
|
|
10.6
|
|
10.7
|
|
10.9
|
|
11.2
|
|
11.2
|
Central Pacific
Bank
|
|
|
|
|
|
|
|
|
|
|
Leverage capital
ratio
|
|
9.1
|
|
9.0
|
|
9.0
|
|
8.9
|
|
9.0
|
Tier 1 risk-based
capital ratio
|
|
12.2
|
|
12.2
|
|
12.6
|
|
12.8
|
|
13.0
|
Total risk-based
capital ratio
|
|
13.4
|
|
13.5
|
|
13.8
|
|
14.0
|
|
14.3
|
Common equity tier 1
capital ratio
|
|
12.2
|
|
12.2
|
|
12.6
|
|
12.8
|
|
13.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
(dollars in thousands,
except for per share amounts)
|
|
2022
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
BALANCE
SHEET
|
|
|
|
|
|
|
|
|
|
|
Total loans, net of
deferred fees and costs
|
|
$ 5,422,212
|
|
$ 5,301,633
|
|
$ 5,174,837
|
|
$ 5,101,649
|
|
$ 5,045,797
|
Total
assets
|
|
7,337,631
|
|
7,299,178
|
|
7,298,819
|
|
7,419,089
|
|
7,298,231
|
Total
deposits
|
|
6,556,434
|
|
6,622,061
|
|
6,599,031
|
|
6,639,158
|
|
6,515,863
|
Long-term
debt
|
|
105,799
|
|
105,738
|
|
105,677
|
|
105,616
|
|
105,556
|
Total shareholders'
equity
|
|
438,468
|
|
455,100
|
|
486,328
|
|
558,219
|
|
555,419
|
Total shareholders'
equity to total assets
|
|
5.98 %
|
|
6.23 %
|
|
6.66 %
|
|
7.52 %
|
|
7.61 %
|
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses (ACL)
|
|
$ 64,382
|
|
$ 65,211
|
|
$ 64,754
|
|
$ 68,097
|
|
$ 74,587
|
Nonaccrual
loans
|
|
4,220
|
|
4,983
|
|
5,336
|
|
5,881
|
|
7,237
|
Non-performing assets
(NPA)
|
|
4,220
|
|
4,983
|
|
5,336
|
|
5,881
|
|
7,237
|
ACL to total
loans
|
|
1.19 %
|
|
1.23 %
|
|
1.25 %
|
|
1.33 %
|
|
1.48 %
|
ACL to nonaccrual
loans
|
|
1,525.64 %
|
|
1,308.67 %
|
|
1,213.53 %
|
|
1,157.92 %
|
|
1,030.63 %
|
NPA to total
assets
|
|
0.06 %
|
|
0.07 %
|
|
0.07 %
|
|
0.08 %
|
|
0.10 %
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE OF COMMON
STOCK OUTSTANDING
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share
|
|
$
16.08
|
|
$
16.57
|
|
$
17.63
|
|
$
20.14
|
|
$
19.84
|
Closing market price
per common share
|
|
20.69
|
|
21.45
|
|
27.90
|
|
28.17
|
|
25.68
|
|
CENTRAL PACIFIC
FINANCIAL CORP. AND SUBSIDIARIES
|
Consolidated Balance
Sheets
|
(Unaudited)
|
TABLE
2
|
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
(Dollars in thousands,
except share data)
|
|
2022
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
financial institutions
|
|
$
116,365
|
|
$
108,389
|
|
$
83,947
|
|
$
81,506
|
|
$
108,669
|
Interest-bearing
deposits in other financial institutions
|
|
22,332
|
|
22,741
|
|
118,183
|
|
247,401
|
|
240,173
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale
debt securities, at fair value
|
|
686,681
|
|
787,373
|
|
1,199,482
|
|
1,631,699
|
|
1,535,450
|
Held-to-maturity debt
securities, at amortized cost; fair value of:
$590,880 at September
30, 2022, $635,565 at June 30, 2022,
$329,503 at March 31,
2022, and none at December 31, 2021
and September 30,
2021
|
|
662,827
|
|
663,365
|
|
329,507
|
|
—
|
|
—
|
Equity securities, at
fair value
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,593
|
Total investment
securities
|
|
1,349,508
|
|
1,450,738
|
|
1,528,989
|
|
1,631,699
|
|
1,537,043
|
Loans held for
sale
|
|
1,701
|
|
535
|
|
4,677
|
|
3,531
|
|
5,290
|
Loans, net of deferred
fees and costs
|
|
5,422,212
|
|
5,301,633
|
|
5,174,837
|
|
5,101,649
|
|
5,045,797
|
Less: allowance for
credit losses
|
|
64,382
|
|
65,211
|
|
64,754
|
|
68,097
|
|
74,587
|
Loans, net of
allowance for credit losses
|
|
5,357,830
|
|
5,236,422
|
|
5,110,083
|
|
5,033,552
|
|
4,971,210
|
Premises and equipment,
net
|
|
89,979
|
|
88,664
|
|
79,455
|
|
80,354
|
|
80,190
|
Accrued interest
receivable
|
|
18,134
|
|
17,146
|
|
16,423
|
|
16,709
|
|
17,110
|
Investment in
unconsolidated entities
|
|
36,769
|
|
37,341
|
|
31,092
|
|
29,679
|
|
30,397
|
Mortgage servicing
rights
|
|
9,216
|
|
9,369
|
|
9,480
|
|
9,738
|
|
9,976
|
Bank-owned life
insurance
|
|
167,761
|
|
167,202
|
|
167,407
|
|
169,148
|
|
167,961
|
Federal Home Loan Bank
("FHLB") stock
|
|
13,546
|
|
8,943
|
|
8,943
|
|
7,964
|
|
7,952
|
Right of use lease
asset
|
|
35,978
|
|
36,978
|
|
38,435
|
|
39,441
|
|
40,757
|
Other assets
|
|
118,512
|
|
114,710
|
|
101,705
|
|
68,367
|
|
81,503
|
Total
assets
|
|
$ 7,337,631
|
|
$ 7,299,178
|
|
$
7,298,819
|
|
$ 7,419,089
|
|
$ 7,298,231
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand
|
|
$ 2,138,083
|
|
$ 2,282,967
|
|
$
2,269,562
|
|
$ 2,291,246
|
|
$ 2,195,404
|
Interest-bearing
demand
|
|
1,441,302
|
|
1,444,566
|
|
1,433,284
|
|
1,415,277
|
|
1,372,626
|
Savings and money
market
|
|
2,194,991
|
|
2,214,146
|
|
2,197,647
|
|
2,225,903
|
|
2,296,968
|
Time
|
|
782,058
|
|
680,382
|
|
698,538
|
|
706,732
|
|
650,865
|
Total
deposits
|
|
6,556,434
|
|
6,622,061
|
|
6,599,031
|
|
6,639,158
|
|
6,515,863
|
FHLB advances and other
short-term borrowings
|
|
115,000
|
|
—
|
|
—
|
|
—
|
|
—
|
Long-term
debt
|
|
105,799
|
|
105,738
|
|
105,677
|
|
105,616
|
|
105,556
|
Lease
liability
|
|
36,941
|
|
38,037
|
|
39,610
|
|
40,731
|
|
41,933
|
Other
liabilities
|
|
84,989
|
|
78,242
|
|
68,123
|
|
75,317
|
|
79,412
|
Total
liabilities
|
|
6,899,163
|
|
6,844,078
|
|
6,812,441
|
|
6,860,822
|
|
6,742,764
|
EQUITY
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, no
par value, authorized 1,000,000 shares;
issued and
outstanding: none at September 30, 2022, June 30,
2022,
March 31, 2022,
December 31, 2021, and September 30, 2021
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Common stock, no par
value, authorized 185,000,000 shares;
issued and
outstanding: 27,262,879 at September 30, 2022,
27,463,562 at June 30,
2022, 27,584,929 at March 31, 2022,
27,714,071 at December
31, 2021, and 27,999,588 at September 30, 2021
|
|
412,994
|
|
417,862
|
|
421,153
|
|
426,091
|
|
436,957
|
Additional paid-in
capital
|
|
100,426
|
|
98,977
|
|
98,270
|
|
98,073
|
|
97,279
|
Retained
earnings
|
|
74,301
|
|
64,693
|
|
54,252
|
|
42,015
|
|
22,916
|
Accumulated other
comprehensive loss
|
|
(149,253)
|
|
(126,432)
|
|
(87,347)
|
|
(7,960)
|
|
(1,733)
|
Total shareholders'
equity
|
|
438,468
|
|
455,100
|
|
486,328
|
|
558,219
|
|
555,419
|
Non-controlling
interest
|
|
—
|
|
—
|
|
50
|
|
48
|
|
48
|
Total
equity
|
|
438,468
|
|
455,100
|
|
486,378
|
|
558,267
|
|
555,467
|
Total liabilities
and equity
|
|
$ 7,337,631
|
|
$ 7,299,178
|
|
$
7,298,819
|
|
$ 7,419,089
|
|
$ 7,298,231
|
|
|
|
|
|
|
|
|
|
|
|
|
CENTRAL PACIFIC
FINANCIAL CORP. AND SUBSIDIARIES
|
Consolidated
Statements of Income
|
(Unaudited)
|
TABLE
3
|
|
|
Three Months Ended
|
|
Nine Months
Ended
|
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
September
30,
|
(Dollars in thousands, except per share data)
|
|
2022
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
|
2022
|
|
2021
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
51,686
|
|
$
46,963
|
|
$
44,949
|
|
$
47,576
|
|
$
51,104
|
|
$
143,598
|
|
$
146,202
|
Interest and dividends
on investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable investment
securities
|
|
6,933
|
|
7,035
|
|
6,969
|
|
6,667
|
|
6,210
|
|
20,937
|
|
15,763
|
Tax-exempt investment
securities
|
|
805
|
|
807
|
|
816
|
|
642
|
|
470
|
|
2,428
|
|
1,330
|
Dividend income on
investment securities
|
|
—
|
|
—
|
|
21
|
|
21
|
|
18
|
|
21
|
|
54
|
Interest on deposits
in other financial institutions
|
|
107
|
|
191
|
|
72
|
|
86
|
|
105
|
|
370
|
|
176
|
Dividend income on
FHLB stock
|
|
138
|
|
68
|
|
59
|
|
61
|
|
62
|
|
265
|
|
184
|
Total interest
income
|
|
59,669
|
|
55,064
|
|
52,886
|
|
55,053
|
|
57,969
|
|
167,619
|
|
163,709
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
|
|
217
|
|
144
|
|
112
|
|
104
|
|
101
|
|
473
|
|
280
|
Savings and money
market
|
|
1,054
|
|
317
|
|
329
|
|
352
|
|
332
|
|
1,700
|
|
888
|
Time
|
|
1,092
|
|
490
|
|
469
|
|
478
|
|
428
|
|
2,051
|
|
1,514
|
Interest on short-term
borrowings
|
|
660
|
|
2
|
|
—
|
|
—
|
|
—
|
|
662
|
|
2
|
Interest on long-term
debt
|
|
1,281
|
|
1,133
|
|
1,041
|
|
1,023
|
|
1,022
|
|
3,455
|
|
3,074
|
Total interest
expense
|
|
4,304
|
|
2,086
|
|
1,951
|
|
1,957
|
|
1,883
|
|
8,341
|
|
5,758
|
Net interest
income
|
|
55,365
|
|
52,978
|
|
50,935
|
|
53,096
|
|
56,086
|
|
159,278
|
|
157,951
|
Provision (credit) for
credit losses
|
|
362
|
|
989
|
|
(3,195)
|
|
(7,692)
|
|
(2,635)
|
|
(1,844)
|
|
(6,899)
|
Net interest income
after provision (credit) for credit losses
|
|
55,003
|
|
51,989
|
|
54,130
|
|
60,788
|
|
58,721
|
|
161,122
|
|
164,850
|
Other operating
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking
income
|
|
831
|
|
1,140
|
|
1,172
|
|
1,902
|
|
1,327
|
|
3,143
|
|
5,830
|
Service charges on
deposit accounts
|
|
2,138
|
|
2,026
|
|
1,861
|
|
1,800
|
|
1,637
|
|
6,025
|
|
4,558
|
Other service charges
and fees
|
|
4,955
|
|
4,610
|
|
4,488
|
|
5,016
|
|
4,942
|
|
14,053
|
|
13,351
|
Income from fiduciary
activities
|
|
1,165
|
|
1,188
|
|
1,154
|
|
1,283
|
|
1,292
|
|
3,507
|
|
3,792
|
Net gain on sales of
investment securities
|
|
—
|
|
8,506
|
|
—
|
|
—
|
|
100
|
|
8,506
|
|
150
|
Income from bank-owned
life insurance
|
|
167
|
|
(1,028)
|
|
539
|
|
946
|
|
540
|
|
(322)
|
|
2,547
|
Other
|
|
373
|
|
696
|
|
337
|
|
619
|
|
415
|
|
1,406
|
|
1,266
|
Total other operating
income
|
|
9,629
|
|
17,138
|
|
9,551
|
|
11,566
|
|
10,253
|
|
36,318
|
|
31,494
|
Other operating
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
22,778
|
|
22,369
|
|
20,942
|
|
23,030
|
|
23,566
|
|
66,089
|
|
67,183
|
Net
occupancy
|
|
4,743
|
|
4,448
|
|
3,774
|
|
4,129
|
|
4,185
|
|
12,965
|
|
12,004
|
Equipment
|
|
1,085
|
|
1,075
|
|
1,082
|
|
1,207
|
|
1,089
|
|
3,242
|
|
3,137
|
Communication
|
|
712
|
|
744
|
|
806
|
|
922
|
|
824
|
|
2,262
|
|
2,349
|
Legal and professional
services
|
|
2,573
|
|
2,916
|
|
2,626
|
|
2,928
|
|
2,575
|
|
8,115
|
|
7,524
|
Computer
software
|
|
4,138
|
|
3,624
|
|
3,082
|
|
3,125
|
|
2,998
|
|
10,844
|
|
10,179
|
Advertising
|
|
1,150
|
|
1,150
|
|
1,150
|
|
1,179
|
|
1,329
|
|
3,450
|
|
4,316
|
Other
|
|
4,819
|
|
9,023
|
|
4,743
|
|
5,902
|
|
4,779
|
|
18,585
|
|
13,932
|
Total other operating
expense
|
|
41,998
|
|
45,349
|
|
38,205
|
|
42,422
|
|
41,345
|
|
125,552
|
|
120,624
|
Income before income
taxes
|
|
22,634
|
|
23,778
|
|
25,476
|
|
29,932
|
|
27,629
|
|
71,888
|
|
75,720
|
Income tax
expense
|
|
5,919
|
|
6,184
|
|
6,038
|
|
7,605
|
|
6,814
|
|
18,141
|
|
18,153
|
Net income
|
|
$
16,715
|
|
$
17,594
|
|
$
19,438
|
|
$
22,327
|
|
$
20,815
|
|
$
53,747
|
|
$
57,567
|
Per common share
data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
0.61
|
|
$
0.64
|
|
$
0.70
|
|
$
0.80
|
|
$
0.74
|
|
$
1.96
|
|
$
2.05
|
Diluted earnings per
share
|
|
0.61
|
|
0.64
|
|
0.70
|
|
0.80
|
|
0.74
|
|
1.94
|
|
2.03
|
Cash dividends
declared
|
|
0.26
|
|
0.26
|
|
0.26
|
|
0.25
|
|
0.24
|
|
0.78
|
|
0.71
|
Basic weighted average
shares outstanding
|
|
27,356,614
|
|
27,516,284
|
|
27,591,390
|
|
27,769,651
|
|
27,967,089
|
|
27,487,237
|
|
28,082,632
|
Diluted weighted
average shares outstanding
|
|
27,501,212
|
|
27,676,619
|
|
27,874,924
|
|
28,045,826
|
|
28,175,953
|
|
27,666,197
|
|
28,316,574
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Certain
amounts in the prior period financial statements have been
reclassified to conform to the presentation of the current
period
|
CENTRAL PACIFIC
FINANCIAL CORP. AND SUBSIDIARIES
|
Average
Balances, Interest Income & Expense, Yields and Rates
(Taxable Equivalent)
|
(Unaudited)
|
TABLE
4
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Three Months Ended
|
|
|
September 30,
2022
|
|
June 30,
2022
|
|
September 30,
2021
|
|
|
Average
|
|
Average
|
|
|
|
Average
|
|
Average
|
|
|
|
Average
|
|
Average
|
|
|
(Dollars in thousands)
|
|
Balance
|
|
Yield/Rate
|
|
Interest
|
|
Balance
|
|
Yield/Rate
|
|
Interest
|
|
Balance
|
|
Yield/Rate
|
|
Interest
|
ASSETS
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits in other financial institutions
|
|
$
19,802
|
|
2.14 %
|
|
$
107
|
|
$ 106,083
|
|
0.72 %
|
|
$
191
|
|
$
273,039
|
|
0.15 %
|
|
$ 105
|
Investment securities,
excluding valuation allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
1,445,781
|
|
1.92
|
|
6,934
|
|
1,487,129
|
|
1.89
|
|
7,034
|
|
1,351,272
|
|
1.84
|
|
6,228
|
Tax-exempt
[1]
|
|
158,052
|
|
2.57
|
|
1,018
|
|
159,087
|
|
2.57
|
|
1,023
|
|
106,333
|
|
2.24
|
|
595
|
Total investment
securities
|
|
1,603,833
|
|
1.98
|
|
7,952
|
|
1,646,216
|
|
1.96
|
|
8,057
|
|
1,457,605
|
|
1.87
|
|
6,823
|
Loans, including loans
held for sale
|
|
5,355,088
|
|
3.84
|
|
51,686
|
|
5,221,300
|
|
3.60
|
|
46,963
|
|
5,022,909
|
|
4.05
|
|
51,104
|
Federal Home Loan Bank
stock
|
|
13,050
|
|
4.23
|
|
138
|
|
8,957
|
|
3.02
|
|
68
|
|
8,090
|
|
3.09
|
|
62
|
Total interest-earning
assets
|
|
6,991,773
|
|
3.41
|
|
59,883
|
|
6,982,556
|
|
3.17
|
|
55,279
|
|
6,761,643
|
|
3.42
|
|
58,094
|
Noninterest-earning
assets
|
|
328,978
|
|
|
|
|
|
327,383
|
|
|
|
|
|
448,567
|
|
|
|
|
Total
assets
|
|
$
7,320,751
|
|
|
|
|
|
$
7,309,939
|
|
|
|
|
|
$
7,210,210
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
|
$
1,450,434
|
|
0.06 %
|
|
$ 217
|
|
$
1,435,088
|
|
0.04 %
|
|
$ 144
|
|
$
1,356,967
|
|
0.03 %
|
|
$ 101
|
Savings and money
market deposits
|
|
2,208,037
|
|
0.19
|
|
1,054
|
|
2,204,934
|
|
0.06
|
|
317
|
|
2,168,055
|
|
0.06
|
|
332
|
Time deposits up to
$250,000
|
|
228,707
|
|
0.42
|
|
245
|
|
217,605
|
|
0.27
|
|
148
|
|
228,762
|
|
0.31
|
|
181
|
Time deposits over
$250,000
|
|
443,178
|
|
0.76
|
|
847
|
|
478,483
|
|
0.29
|
|
342
|
|
467,289
|
|
0.21
|
|
247
|
Total interest-bearing
deposits
|
|
4,330,356
|
|
0.22
|
|
2,363
|
|
4,336,110
|
|
0.09
|
|
951
|
|
4,221,073
|
|
0.08
|
|
861
|
Federal Home Loan Bank
advances and other short-term borrowings
|
|
102,777
|
|
2.55
|
|
660
|
|
363
|
|
1.84
|
|
2
|
|
—
|
|
—
|
|
—
|
Long-term
debt
|
|
105,760
|
|
4.80
|
|
1,281
|
|
105,699
|
|
4.30
|
|
1,133
|
|
105,516
|
|
3.84
|
|
1,022
|
Total interest-bearing
liabilities
|
|
4,538,893
|
|
0.38
|
|
4,304
|
|
4,442,172
|
|
0.19
|
|
2,086
|
|
4,326,589
|
|
0.17
|
|
1,883
|
Noninterest-bearing
deposits
|
|
2,204,965
|
|
|
|
|
|
2,290,352
|
|
|
|
|
|
2,203,695
|
|
|
|
|
Other
liabilities
|
|
115,565
|
|
|
|
|
|
105,979
|
|
|
|
|
|
118,272
|
|
|
|
|
Total
liabilities
|
|
6,859,423
|
|
|
|
|
|
6,838,503
|
|
|
|
|
|
6,648,556
|
|
|
|
|
Shareholders'
equity
|
|
461,328
|
|
|
|
|
|
471,420
|
|
|
|
|
|
561,606
|
|
|
|
|
Non-controlling
interest
|
|
—
|
|
|
|
|
|
16
|
|
|
|
|
|
48
|
|
|
|
|
Total
equity
|
|
461,328
|
|
|
|
|
|
471,436
|
|
|
|
|
|
561,654
|
|
|
|
|
Total
liabilities and equity
|
|
$
7,320,751
|
|
|
|
|
|
$
7,309,939
|
|
|
|
|
|
$
7,210,210
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
|
|
$ 55,579
|
|
|
|
|
|
$ 53,193
|
|
|
|
|
|
$ 56,211
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
spread
|
|
|
|
3.03 %
|
|
|
|
|
|
2.98 %
|
|
|
|
|
|
3.25 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
|
3.17 %
|
|
|
|
|
|
3.05 %
|
|
|
|
|
|
3.31 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[1] Interest income
and resultant yield information for tax-exempt investment
securities is expressed on a taxable-equivalent basis using a
federal statutory tax rate of 21%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CENTRAL PACIFIC
FINANCIAL CORP. AND SUBSIDIARIES
|
Average
Balances, Interest Income & Expense, Yields and Rates
(Taxable Equivalent)
|
(Unaudited)
|
TABLE
5
|
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
2022
|
|
September 30,
2021
|
|
|
Average
|
|
Average
|
|
|
|
Average
|
|
Average
|
|
|
(Dollars in thousands)
|
|
Balance
|
|
Yield/Rate
|
|
Interest
|
|
Balance
|
|
Yield/Rate
|
|
Interest
|
ASSETS
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits in other financial institutions
|
|
$
94,076
|
|
0.53 %
|
|
$
370
|
|
$ 180,646
|
|
0.13 %
|
|
$
176
|
Investment securities,
excluding valuation allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
1,473,989
|
|
1.90
|
|
20,958
|
|
1,202,564
|
|
1.75
|
|
15,817
|
Tax-exempt
[1]
|
|
160,144
|
|
2.56
|
|
3,073
|
|
97,613
|
|
2.30
|
|
1,684
|
Total investment
securities
|
|
1,634,133
|
|
1.96
|
|
24,031
|
|
1,300,177
|
|
1.79
|
|
17,501
|
Loans, including loans
held for sale
|
|
5,231,098
|
|
3.67
|
|
143,598
|
|
5,070,993
|
|
3.85
|
|
146,202
|
Federal Home Loan Bank
stock
|
|
10,019
|
|
3.53
|
|
265
|
|
7,924
|
|
3.11
|
|
184
|
Total interest-earning
assets
|
|
6,969,326
|
|
3.22
|
|
168,264
|
|
6,559,740
|
|
3.34
|
|
164,063
|
Noninterest-earning
assets
|
|
354,270
|
|
|
|
|
|
438,294
|
|
|
|
|
Total
assets
|
|
$
7,323,596
|
|
|
|
|
|
$
6,998,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
|
$
1,437,034
|
|
0.04 %
|
|
$
473
|
|
$
1,271,825
|
|
0.03 %
|
|
$
280
|
Savings and money
market deposits
|
|
2,208,449
|
|
0.10
|
|
1,700
|
|
2,057,194
|
|
0.06
|
|
888
|
Time deposits up
to $250,000
|
|
223,343
|
|
0.33
|
|
548
|
|
232,474
|
|
0.36
|
|
619
|
Time deposits over
$250,000
|
|
461,180
|
|
0.44
|
|
1,503
|
|
579,984
|
|
0.21
|
|
895
|
Total interest-bearing
deposits
|
|
4,330,006
|
|
0.13
|
|
4,224
|
|
4,141,477
|
|
0.09
|
|
2,682
|
Federal Home Loan Bank
advances and other short-term borrowings
|
|
34,756
|
|
2.55
|
|
662
|
|
810
|
|
0.30
|
|
2
|
Long-term
debt
|
|
105,699
|
|
4.37
|
|
3,455
|
|
105,458
|
|
3.90
|
|
3,074
|
Total interest-bearing
liabilities
|
|
4,470,461
|
|
0.25
|
|
8,341
|
|
4,247,745
|
|
0.18
|
|
5,758
|
Noninterest-bearing
deposits
|
|
2,250,496
|
|
|
|
|
|
2,077,895
|
|
|
|
|
Other
liabilities
|
|
112,478
|
|
|
|
|
|
117,113
|
|
|
|
|
Total
liabilities
|
|
6,833,435
|
|
|
|
|
|
6,442,753
|
|
|
|
|
Shareholders'
equity
|
|
490,140
|
|
|
|
|
|
555,264
|
|
|
|
|
Non-controlling
interest
|
|
21
|
|
|
|
|
|
17
|
|
|
|
|
Total
equity
|
|
490,161
|
|
|
|
|
|
555,281
|
|
|
|
|
Total
liabilities and equity
|
|
$
7,323,596
|
|
|
|
|
|
$
6,998,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
|
|
$ 159,923
|
|
|
|
|
|
$ 158,305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
spread
|
|
|
|
2.97 %
|
|
|
|
|
|
3.16 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
|
3.06 %
|
|
|
|
|
|
3.22 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[1] Interest income
and resultant yield information for tax-exempt investment
securities is expressed on a taxable-equivalent basis using a
federal statutory tax rate of 21%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CENTRAL PACIFIC
FINANCIAL CORP. AND SUBSIDIARIES
|
|
Loans by Geographic
Distribution
|
|
(Unaudited)
|
TABLE
6
|
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
(Dollars in
thousands)
|
|
2022
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
HAWAII:
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial
and agricultural:
|
|
|
|
|
|
|
|
|
|
|
SBA Paycheck
Protection Program
|
|
$
5,208
|
|
$
19,469
|
|
$
43,380
|
|
$
87,459
|
|
$
198,315
|
Other
|
|
358,805
|
|
367,676
|
|
407,559
|
|
422,388
|
|
404,751
|
Real
estate:
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
138,724
|
|
134,103
|
|
122,329
|
|
122,867
|
|
128,908
|
Residential
mortgage
|
|
1,923,068
|
|
1,890,783
|
|
1,874,048
|
|
1,875,980
|
|
1,748,729
|
Home equity
|
|
719,399
|
|
698,209
|
|
676,326
|
|
637,249
|
|
618,951
|
Commercial
mortgage
|
|
1,002,874
|
|
994,405
|
|
927,241
|
|
922,146
|
|
915,746
|
Consumer
|
|
347,388
|
|
341,213
|
|
337,188
|
|
333,843
|
|
331,987
|
Total loans, net of
deferred fees and costs
|
|
4,495,466
|
|
4,445,858
|
|
4,388,071
|
|
4,401,932
|
|
4,347,387
|
Allowance for credit
losses
|
|
(47,814)
|
|
(51,374)
|
|
(51,521)
|
|
(55,808)
|
|
(62,126)
|
Loans, net of
allowance for credit losses
|
|
$
4,447,652
|
|
$ 4,394,484
|
|
$ 4,336,550
|
|
$ 4,346,124
|
|
$ 4,285,261
|
|
|
|
|
|
|
|
|
|
|
|
U.S. MAINLAND:
[1]
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial
and agricultural:
|
|
|
|
|
|
|
|
|
|
|
SBA Paycheck
Protection Program
|
|
$
—
|
|
$
712
|
|
$
851
|
|
$
3,868
|
|
$
20,356
|
Other
|
|
158,474
|
|
156,567
|
|
136,857
|
|
107,733
|
|
114,122
|
Real
estate:
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
12,872
|
|
10,935
|
|
988
|
|
—
|
|
—
|
Commercial
mortgage
|
|
332,872
|
|
309,230
|
|
316,258
|
|
298,058
|
|
292,671
|
Consumer
|
|
422,528
|
|
378,331
|
|
331,812
|
|
290,058
|
|
271,261
|
Total loans, net of
deferred fees and costs
|
|
926,746
|
|
855,775
|
|
786,766
|
|
699,717
|
|
698,410
|
Allowance for credit
losses
|
|
(16,568)
|
|
(13,837)
|
|
(13,233)
|
|
(12,289)
|
|
(12,461)
|
Loans, net of
allowance for credit losses
|
|
$
910,178
|
|
$
841,938
|
|
$
773,533
|
|
$
687,428
|
|
$
685,949
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL:
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial
and agricultural:
|
|
|
|
|
|
|
|
|
|
|
SBA Paycheck
Protection Program
|
|
$
5,208
|
|
$
20,181
|
|
$
44,231
|
|
$
91,327
|
|
$
218,671
|
Other
|
|
517,279
|
|
524,243
|
|
544,416
|
|
530,121
|
|
518,873
|
Real
estate:
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
151,596
|
|
145,038
|
|
123,317
|
|
122,867
|
|
128,908
|
Residential
mortgage
|
|
1,923,068
|
|
1,890,783
|
|
1,874,048
|
|
1,875,980
|
|
1,748,729
|
Home equity
|
|
719,399
|
|
698,209
|
|
676,326
|
|
637,249
|
|
618,951
|
Commercial
mortgage
|
|
1,335,746
|
|
1,303,635
|
|
1,243,499
|
|
1,220,204
|
|
1,208,417
|
Consumer
|
|
769,916
|
|
719,544
|
|
669,000
|
|
623,901
|
|
603,248
|
Total loans, net of
deferred fees and costs
|
|
5,422,212
|
|
5,301,633
|
|
5,174,837
|
|
5,101,649
|
|
5,045,797
|
Allowance for credit
losses
|
|
(64,382)
|
|
(65,211)
|
|
(64,754)
|
|
(68,097)
|
|
(74,587)
|
Loans, net of
allowance for credit losses
|
|
$
5,357,830
|
|
$ 5,236,422
|
|
$ 5,110,083
|
|
$ 5,033,552
|
|
$ 4,971,210
|
|
|
|
|
|
|
|
|
|
|
|
[1] U.S. Mainland
includes territories of the United States
|
CENTRAL PACIFIC
FINANCIAL CORP. AND SUBSIDIARIES
|
Deposits
|
|
(Unaudited)
|
TABLE
7
|
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
(Dollars in
thousands)
|
|
2022
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
Noninterest-bearing
demand
|
|
$
2,138,083
|
|
$
2,282,967
|
|
$
2,269,562
|
|
$
2,291,246
|
|
$
2,195,404
|
Interest-bearing
demand
|
|
1,441,302
|
|
1,444,566
|
|
1,433,284
|
|
1,415,277
|
|
1,372,626
|
Savings and money
market
|
|
2,194,991
|
|
2,214,146
|
|
2,197,647
|
|
2,225,903
|
|
2,296,968
|
Time deposits less than
$100,000
|
|
153,238
|
|
129,103
|
|
132,712
|
|
136,584
|
|
139,358
|
Other time deposits
$100,000 to $250,000
|
|
108,723
|
|
84,840
|
|
87,838
|
|
88,873
|
|
87,491
|
Core
deposits
|
|
6,036,337
|
|
6,155,622
|
|
6,121,043
|
|
6,157,883
|
|
6,091,847
|
|
|
|
|
|
|
|
|
|
|
|
Government time
deposits
|
|
195,057
|
|
165,000
|
|
188,000
|
|
214,950
|
|
238,950
|
Other time deposits
greater than $250,000
|
|
325,040
|
|
301,439
|
|
289,988
|
|
266,325
|
|
185,066
|
Total time deposits
greater than $250,000
|
|
520,097
|
|
466,439
|
|
477,988
|
|
481,275
|
|
424,016
|
Total
deposits
|
|
$
6,556,434
|
|
$
6,622,061
|
|
$
6,599,031
|
|
$
6,639,158
|
|
$
6,515,863
|
|
|
|
|
|
|
|
|
|
|
|
CENTRAL PACIFIC
FINANCIAL CORP. AND SUBSIDIARIES
|
Nonperforming
Assets, Past Due and Restructured Loans
|
(Unaudited)
|
TABLE
8
|
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
(Dollars in
thousands)
|
|
2022
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
Nonaccrual loans:
[1]
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial
and agricultural - Other
|
|
$
277
|
|
$
333
|
|
$
293
|
|
$
183
|
|
$
689
|
Real
estate:
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
2,771
|
|
3,490
|
|
3,804
|
|
4,623
|
|
5,351
|
Home equity
|
|
584
|
|
592
|
|
820
|
|
786
|
|
880
|
Consumer
|
|
588
|
|
568
|
|
419
|
|
289
|
|
317
|
Total nonaccrual
loans
|
|
4,220
|
|
4,983
|
|
5,336
|
|
5,881
|
|
7,237
|
Other real estate owned
("OREO"):
|
|
|
|
|
|
|
|
|
|
|
Real
estate:
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Total OREO
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Total nonperforming
assets ("NPAs")
|
|
4,220
|
|
4,983
|
|
5,336
|
|
5,881
|
|
7,237
|
Loans delinquent for 90
days or more still accruing interest: [1]
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial
and agricultural - Other
|
|
669
|
|
309
|
|
592
|
|
945
|
|
—
|
Real
estate:
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
503
|
|
—
|
|
111
|
|
—
|
|
444
|
Home equity
|
|
—
|
|
—
|
|
—
|
|
44
|
|
—
|
Consumer
|
|
623
|
|
842
|
|
621
|
|
374
|
|
166
|
Total loans delinquent
for 90 days or more still accruing interest
|
|
1,795
|
|
1,151
|
|
1,324
|
|
1,363
|
|
610
|
Restructured loans
still accruing interest: [1]
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial
and agricultural - Other
|
|
—
|
|
—
|
|
—
|
|
—
|
|
12
|
Real
estate:
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
2,030
|
|
2,006
|
|
2,751
|
|
3,768
|
|
4,458
|
Commercial
mortgage
|
|
925
|
|
965
|
|
1,004
|
|
1,043
|
|
1,577
|
Consumer
|
|
69
|
|
76
|
|
83
|
|
92
|
|
99
|
Total restructured
loans still accruing interest
|
|
3,024
|
|
3,047
|
|
3,838
|
|
4,903
|
|
6,146
|
Total NPAs and loans
delinquent for 90 days or more and
restructured loans
still accruing interest
|
|
$
9,039
|
|
$
9,181
|
|
$
10,498
|
|
$
12,147
|
|
$
13,993
|
|
|
|
|
|
|
|
|
|
|
|
Total nonaccrual loans
as a percentage of total loans
|
|
0.08 %
|
|
0.09 %
|
|
0.10 %
|
|
0.12 %
|
|
0.14 %
|
Total NPAs as a
percentage of total loans and OREO
|
|
0.08 %
|
|
0.09 %
|
|
0.10 %
|
|
0.12 %
|
|
0.14 %
|
Total NPAs and loans
delinquent for 90 days or more still accruing
interest as a
percentage of total loans and OREO
|
|
0.11 %
|
|
0.12 %
|
|
0.13 %
|
|
0.14 %
|
|
0.16 %
|
Total NPAs, loans
delinquent for 90 days or more and restructured
loans still accruing
interest as a percentage of total loans and OREO
|
|
0.17 %
|
|
0.17 %
|
|
0.20 %
|
|
0.24 %
|
|
0.28 %
|
|
|
|
|
|
|
|
|
|
|
|
Quarter-to-quarter
changes in NPAs:
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
quarter
|
|
$
4,983
|
|
$
5,336
|
|
$
5,881
|
|
$
7,237
|
|
$
6,745
|
Additions
|
|
1,072
|
|
1,881
|
|
1,659
|
|
1,375
|
|
1,951
|
Reductions:
|
|
|
|
|
|
|
|
|
|
|
Payments
|
|
(329)
|
|
(285)
|
|
(1,598)
|
|
(933)
|
|
(767)
|
Return to accrual
status
|
|
(616)
|
|
(979)
|
|
(38)
|
|
(1,034)
|
|
(141)
|
Charge-offs, valuation
and other adjustments
|
|
(890)
|
|
(970)
|
|
(568)
|
|
(764)
|
|
(551)
|
Total
reductions
|
|
(1,835)
|
|
(2,234)
|
|
(2,204)
|
|
(2,731)
|
|
(1,459)
|
Balance at end of
quarter
|
|
$
4,220
|
|
$
4,983
|
|
$
5,336
|
|
$
5,881
|
|
$
7,237
|
|
|
|
|
|
|
|
|
|
|
|
|
[1] Section 4013 of
the CARES Act and the revised Interagency Statement were applied to
loan modifications related to the COVID-19 pandemic as eligible and
applicable. This relief ended on January 1, 2022. These loan
modifications were not included in the delinquent or restructured
loan balances presented above
|
CENTRAL PACIFIC
FINANCIAL CORP. AND SUBSIDIARIES
|
Allowance for Credit
Losses on Loans
|
(Unaudited)
|
TABLE
9
|
|
|
Three Months Ended
|
|
Nine Months
Ended
|
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
September
30,
|
(Dollars in
thousands)
|
|
2022
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
|
2022
|
|
2021
|
Allowance for
credit losses ("ACL"):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACL at beginning of
period
|
|
$ 65,211
|
|
$ 64,754
|
|
$ 68,097
|
|
$ 74,587
|
|
$ 77,781
|
|
$ 68,097
|
|
$ 83,269
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Credit) provision for
credit losses on loans [1]
|
|
731
|
|
1,456
|
|
(2,931)
|
|
(7,417)
|
|
(2,969)
|
|
(744)
|
|
(6,906)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial
and agricultural - Other
|
|
550
|
|
487
|
|
254
|
|
379
|
|
334
|
|
1,291
|
|
1,344
|
Consumer
|
|
1,912
|
|
1,390
|
|
1,216
|
|
952
|
|
829
|
|
4,518
|
|
3,450
|
Total
charge-offs
|
|
2,462
|
|
1,877
|
|
1,470
|
|
1,331
|
|
1,163
|
|
5,809
|
|
4,794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial
and agricultural - Other
|
|
220
|
|
215
|
|
350
|
|
358
|
|
281
|
|
785
|
|
646
|
Real
estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
14
|
|
62
|
|
—
|
|
1,159
|
|
—
|
|
76
|
|
—
|
Residential
mortgage
|
|
14
|
|
36
|
|
112
|
|
13
|
|
53
|
|
162
|
|
345
|
Home equity
|
|
36
|
|
—
|
|
—
|
|
—
|
|
—
|
|
36
|
|
9
|
Commercial
mortgage
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
73
|
Consumer
|
|
618
|
|
565
|
|
596
|
|
728
|
|
604
|
|
1,779
|
|
1,945
|
Total
recoveries
|
|
902
|
|
878
|
|
1,058
|
|
2,258
|
|
938
|
|
2,838
|
|
3,018
|
Net charge-offs
(recoveries)
|
|
1,560
|
|
999
|
|
412
|
|
(927)
|
|
225
|
|
2,971
|
|
1,776
|
ACL at end of
period
|
|
$ 64,382
|
|
$ 65,211
|
|
$ 64,754
|
|
$ 68,097
|
|
$ 74,587
|
|
$ 64,382
|
|
$ 74,587
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans, net of
deferred fees and costs
|
|
$ 5,355,088
|
|
$ 5,221,300
|
|
$ 5,114,260
|
|
$ 5,073,069
|
|
$ 5,022,909
|
|
$ 5,231,098
|
|
$ 5,070,993
|
Annualized ratio of net
charge-offs to average loans
|
|
0.12 %
|
|
0.08 %
|
|
0.03 %
|
|
(0.07) %
|
|
0.02 %
|
|
0.08 %
|
|
0.05 %
|
|
[1] As of January 1,
2021, the provision for credit losses on off-balance sheet credit
exposures (previously included in other operating expense) is
included in the provision for credit losses line on the
consolidated statements of income. The allowance for
off-balance sheet credit exposures continues to be included in
other liabilities. For roll-forward purposes, in this table we
exclude the provision for credit losses on off-balance sheet credit
exposures
|
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SOURCE Central Pacific Financial Corp.